Inspired Share Discussion Threads

[rogers8] 03/7/2023 16:08

Many thanks

[1224saj] 03/7/2023 15:52

Conversation 1 share for every 10 held on the register on the 01/07/23

[rogers8] 03/7/2023 14:00

Why is the share price up 800%?

[1224saj] 16/6/2023 15:26

Exdiv yesterday

[1224saj] 15/6/2023 08:55

And I ain't selling my 480k shares for anything less than 20p :-)

[rivaldo] 15/6/2023 07:16

Yep, Gresham are now up to 29.55% - another 0.5% and they'll have to make an offer for the company :o))

[1gw] 14/6/2023 15:48

And there we have Gresham House taking advantage of the dilution to add a further 7m shares and go back above 29%, as I read it.

[1224saj] 08/6/2023 10:31

Yes they are changing the share register to a 10 for 1 new share. So at todays mid price would become £1.10

[earwacks] 08/6/2023 07:57

I think there should be an rns, but like I say this company is not the most communicative. Arent they doing a consolidation to try and make the share price look better?

[earwacks] 08/6/2023 07:55

I think there should be an rns, but like I say this company is not the most communicative.

[1224saj] 07/6/2023 16:56

I agree, with your view. What's your thoughts on the 7m sold?

[earwacks] 07/6/2023 15:54

I don’t think Gresham have sold any of their shares. It’s just that the number in circulation has increased so their percentage of the increased number reduces their percentage slightly and as they own about 30 per cent are obliged to notify the company who in turn notify the market via an RNS, which states the reason for change is an event that has changed the number of voting rights . Not because of a sale or purchase. Not the most communicative company

[1224saj] 07/6/2023 15:44

The question is, who's the buyer?

[1224saj] 07/6/2023 15:43

Is Gresham unloading again today 6m sold

[1gw] 06/6/2023 17:13

No - it's just dilution (Ignite contingent consideration equity) causing them to drop through a % threshold. Hence they've ticked the "An event changing the breakdown of voting rights" box. You can see them with the same holding in terms of number of shares on the Inspired site, as of 14th May.

The holdings notice provides some transparency on how their holding is built up through different funds.

[1224saj] 06/6/2023 11:35

So Gresham have reduced their position by 0.87%?

[rivaldo] 25/5/2023 10:42

Ken Wooton did a presentation on Tuesday at the Mello investment conference on behalf of Strategic Equity Capital/Gresham House. They of course have a large holding in INSE, and Ken ran through a few companies in their portfolio. INSE was one of the companies he highlighted.

In particular it was good to hear him confirm that he and other large shareholders had been consulted and approved the recent renegotiation of the Ignite deferred consideration.

[rivaldo] 22/5/2023 13:57

Liberum say Buy with a 20p valuation. Here's their summary and conclusion:

"Inspired announces a Deed of variation signed with the vendors of Ignite. It provides maximum additional consideration of £9.25m. We make four key points: 1) The new earn-out requires delivery of certain targets, which our analysis shows, are stretching. 2) The statement says the additional contingent consideration (CC) is self-funding. 3) The purpose is to incentivise the Ignite management. 4) The
acquisition of Ignite remains an attractive deal, with a possible CY 24 EV/EBITDA of 2.7x. We maintain our BUY recommendation and TP of 20p; A CY 23 P/E of 9.4x
represents growth at a reasonable price."

"We maintain our BUY recommendation and TP of 20p; A CY 23 P/E of 9.4x represents growth at a reasonable price

We maintain our BUY recommendation and TP of 20p; A CY 23 P/E of 9.4x represents growth at a reasonable price. The strong credentials should become a positive share price driver, even though Inspired still trades like an energy company. Using a sum of the parts, we derive our target price of 20p."

[1gw] 22/5/2023 13:33

At the end of the day it was a negotiation. The vendors could have left at the end of this year (original earn-out arrangements ran as far as FY23 financial performance) and INSE management had to decide what the chance of them wanting to stay on anyway (i.e. without additional specific incentive) was, and what would be the likely impact on the business were they to leave.

Having determined that they wanted the vendors to stay on and guide the business through the next few years, it's then just a question of how much they have to pay to achieve that and how to structure the payments and success criteria. Some of the elements look a bit odd, such as the incentive to recover the debt from the big customer, but that's what happens in a negotiation - in order to stay within both sides' "red lines" you sometimes end up with compromise solutions that neither side might have argued for initially.

We can try to second guess what might have happened without a new incentive arrangement, and we can speculate that after such a long transition INSE ought to have been able to find suitably capable replacement leadership for Ignite, but the reality is we don't know how important the vendors' continued involvement is.

At the very least, I take this morning's announcement as an encouraging comment on current performance of Ignite and its management team, and confirmation of exciting potential for the future of the business.

[1224saj] 22/5/2023 12:54

Self funding I understand, but why is that money not filtering down to the battered shareholders by way of special dividend

[rivaldo] 22/5/2023 11:43

Overall this looks promising for INSE imo, extending the timeline for the Ignite consideration out to 2027 and presumably locking in their management until then for a growth phase which could transform INSE.

Obviously the preferable option would be no additional consideration, but it's easy to see that Covid knocked out two years of calculations for the initial agreement, so a renegotiation was always on the cards and getting consensus on strategy through to 2027 strikes me as a good thing.

[earwacks] 22/5/2023 11:04

Entirely self funding incentive plan for Energised’s own performance to beat forecasts.
Yet again the market does not understand. Value will out. There a lot of very thick fund managers out there. Ken Wotton is not one of them!

[1224saj] 22/5/2023 10:54

Solid opinion of the situation

[melody9999] 22/5/2023 09:50

"This Deed will re-incentivise the Vendors, as management recognise that the Vendors have only had one full year of the three to demonstrate the full scale of the opportunity due to Covid-19 disruption."

Huh - sorry but thats life. Shareholders investing their wealth in INSE have seen their shares decrease in value by 50%+ over that time.

Disclosure - I have not been a INSE s/holder over the past 3 years so this is not sour grapes - just a view from the sidelines. I will probably stay just watching now whilst the 2.6M shares issued to IGNITE further dilute s/holders that have paid good money.